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On June 15, Year 1, a company entered into a long-term construction contract to bulid a sports arena for $360 million. The expected completion date

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On June 15, Year 1, a company entered into a long-term construction contract to bulid a sports arena for $360 million. The expected completion date is April 1, Year 3, just in time for the Year 3 sports season. Costs incurred and estimated costs to complete at year-end for the life of the contract are as follows (\$ in millions): 1. Compute the revenue and gross profit that the company will report in its Year 1, Year 2, and Year 3 income statements related to this contract, assuming the company recognizes revenue over time according to percentage of completion. 2. Compute the revenue and gross profit that the company will report in its Year 1, Year 2, and Year 3 income statements related to this contract, assuming this project does not qualify for revenue recognition over time. 3. Suppose the estimated costs to complete at the end of Year 2 are $140 million instead of $70 million. Compute the amount of revenue and gross profit or loss to be recognized in Year 2, assuming the company recognizes revenue over time according to percentage of completion. Complete this question by entering your answers in the tabs below. Compute the revenue and gross profit that the company will report in its Year 1, Year 2, and Year 3 income statements related to this contract, assuming the company recognizes revenue over time according to percentage of completion. Note: Enter your answer in millions (i.e., $4,000,000 should be entered as $4 ). Loss amounts should be indicated with a minus sign. Use percentages as calculated and rounded in the table below to arrive at your final answer. On June 15, Year 1, a company entered into a long-term construction contract to bulld a sports arena for $360 million. The expected completion date is April 1, Year 3, just in time for the Year 3 sports season. Costs incurred and estimated costs to complete at year-end for the life of the contract are as follows (\$ in millions): 1. Compute the revenue and gross profit that the company will report in its Year 1, Year 2, and Year 3 income statements related to this contract, assuming the company recognizes revenue over time according to percentage of completion. 2. Compute the revenue and gross profit that the company will report in its Year 1, Year 2, and Year 3 income statements related to this contract, assuming this project does not qualify for revenue recognition over time. 3. Suppose the estimated costs to complete at the end of Year 2 are $140 million instead of $70 million. Compute the amount of revenue and gross profit or loss to be recognized in Year 2 , assuming the company recognizes revenue over time according to percentage of completion. Complete this question by entering your answers in the tabs below. Suppose the estimated costs to complete at the end of Year 2 are $140 malion instead of $70 million. Compute the amount of revenue and gross profit or loss to be recognized in Year 2, assuming the company recognizes revenue over time according to percentage of completion. Note: Enter your answer in millions (1.e, $4,000,000 should be entered as $4 ). Use percentages as calculated and rounded in the tabie below to amive at your final answer. Loss amounts should be indicated with a minus sign. On June 15, Year 1, a company entered into a long-term construction contract to bulid a sports arena for $360 million. The expected completion date is April 1, Year 3, just in time for the Year 3 sports season. Costs incurred and estimated costs to complete at year-end for the life of the contract are as follows (\$ in millions): 1. Compute the revenue and gross profit that the company will report in its Year 1, Year 2, and Year 3 income statements related to this contract, assuming the company recognizes revenue over time according to percentage of completion. 2. Compute the revenue and gross profit that the company will report in its Year 1, Year 2, and Year 3 income statements related to this contract, assuming this project does not qualify for revenue recognition over time. 3. Suppose the estimated costs to complete at the end of Year 2 are $140 million instead of $70 million. Compute the amount of revenue and gross profit or loss to be recognized in Year 2 , assuming the company recognizes revenue over time according to percentage of completion. Complete this question by entering your answers in the tabs below. Compute the revenue and gross profit that the company will report in its Year 1, Year 2, and Year 3 income statements related to this contract, assuming this project does not qualify for revenue recognition over time. Note: Enter your answer in millions (l.e., \$4,000,000 should be entered as \$4), Loss amounts should be indicated with a minus sign, Leave no cells blank

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